In recent years, the international trade environment has become increasingly complex and volatile. However, Chinese companies have not slowed down their pace of going global. An increasing number of Chinese enterprises are actively expanding into overseas markets. Behind this trend of Chinese companies “going global” lies a strategic consideration: seeking broader development opportunities and leveraging global resources to enhance competitiveness.

Among the numerous overseas destinations, Singapore has stood out as the preferred choice for many Chinese companies venturing abroad. The city-state offers significant advantages in its business environment, including:

• A well-developed infrastructure, a mature financial system, and a highly internationalized business atmosphere;
• Transparent tax policies that allow businesses to clearly anticipate tax expenses and effectively plan their finances;
• The Singapore government provides businesses with convenient and efficient services in areas such as company registration and operational management.

Today, let’s take a closer look at the local tax system. This article will provide a detailed analysis of the key deadlines for Singapore corporate tax filing, helping you navigate tax compliance and related matters with ease.

Key Deadlines for Singapore Corporate Tax Filing

1. Financial Year End (FYE)

The financial year end (FYE) for a Singapore company is determined by the company itself. While it is commonly set as December 31, companies are free to choose other dates.Note: For newly established companies, the first financial year must not exceed 18 months.

2. Annual General Meeting (AGM)

Under Singapore’s Companies Act, companies are required to hold an Annual General Meeting (AGM) within six months after the end of their financial year. During the AGM, audited financial statements must be presented to shareholders.

3. Submission of Annual Return

Companies must submit their Annual Return to the Accounting and Corporate Regulatory Authority (ACRA) within one month after the AGM. Late submissions may incur fines.

4. Estimated Chargeable Income (ECI) Submission

Companies are required to submit their Estimated Chargeable Income (ECI) declaration to the Inland Revenue Authority of Singapore (IRAS) within three months after the end of their financial year. Even if a company has no income or incurs losses, it must file a “nil return.”

5. Corporate Income Tax Filing

Companies must file their Corporate Income Tax returns (Form C, Form C-S, or Form C-S (lite)) by November 30 of each year.

Key Considerations for Singapore Corporate Tax Filing

• Tax Rate and Filing Obligations

Upon the conclusion of the financial year, companies—both foreign and locally based in Singapore—are required to pay taxes at a unified rate of 17% on their chargeable income.

• ECI Exemptions

Certain companies are exempt from submitting ECI. These include:

• • Companies with annual revenues of SGD 5 million or less and zero chargeable income.
  • Foreign shipowners or charterers, provided that the local freight forwarder has submitted or will submit the shipping income tax return.
  • Foreign universities.
  • Designated unit trusts and approved CPF unit trusts.
  • Real estate investment trusts (REITs) granted tax exemption under Section 43(2) of the Income Tax Act of 1947.
  • Companies specifically granted exemptions by the IRAS.

Companies will receive a notification to submit ECI before the end of their financial year. For newly established companies, the ECI submission notification will be sent one year after incorporation. For example, if a company is established in 2021 with a financial year ending in December, the ECI submission notification for the 2023 tax assessment year will be received in December 2022.

• Tax Filing Requirements for Different Sizes of Companies
• Form C-S

Companies must file Form C-S if they meet the following criteria:

• • The company is incorporated in Singapore.
  • The company’s annual revenue is SGD 5 million or less.
  • The company is taxed at the standard rate of 17% on its chargeable income (some companies may qualify for lower tax rates).
  • The company does not require the carry-forward of capital allowances, losses, group relief, investment allowances, foreign tax credits, or withholding tax.
• Form C-S (lite)

Companies that meet the criteria for Form C-S and have annual revenues of SGD 200,000 or less may opt to file the simplified version of the Corporate Income Tax return, Form C-S (lite). This form consists of only six sections, making it easier for eligible companies to complete their tax filings.

• Form C

Companies with annual revenues exceeding SGD 5 million must file their tax returns using Form C. In addition to Form C, these companies are required to submit financial statements, detailed profit and loss statements, tax computation sheets, and supporting schedules.

Note: While companies filing Form C-S or Form C-S (lite) are not required to submit financial statements, detailed profit and loss statements, tax computation sheets, or supporting schedules, they should still prepare these documents. In certain cases, the IRAS may request these documents separately.

How Does a Company Pay Taxes in Singapore?

The IRAS will estimate the tax payable based on the Corporate Income Tax return submitted by the company and notify the company via a Notice of Assessment (NOA). Companies are required to pay the tax amount stated in the NOA within one month from the date of the notice. Failure to do so may result in penalties.

If a company disagrees with the tax amount stated in the NOA, it may appeal within two months from the date of the notice. However, the company must first pay the tax amount as stated in the NOA before filing the appeal.

Conclusion

While Singapore’s tax system is transparent, it can still be complex for companies entering the market for the first time. Seeking assistance from professional tax advisors can help ensure compliance and optimize tax costs, allowing your business to focus on growth and success in this dynamic business environment.

Contact us to learn more about the tax and investment policies in Singapore.